Key factors affecting purchase intention in Russian online context

Russian e-commerce has drawn a lot of attention in academic publications as well as in public media lately. The market is growing with a speed of rocket offering companies enormous business opportunities. However, combination of Russian culture, consumer online purchasing and decision-making process forms a subject yet completely unknown. From international online business perspective it is vital for companies to know how a culture affects consumer’s purchase decision and what are the key elements that need to be modified in order to successfully expand online operations to Russian market. Here, the main purpose is to define the key factors affecting Russian consumer’s online purchase intention. In order to answer the main research question, firstly the role of culture in purchase intention context is researched. Secondly, focus is drawn to the factors that affect online purchase intention. Lastly, it is researched how Russian culture is affecting e-commerce attributes modification. The objective is not only to expand the theoretical understanding of the subject but also to provide companies with a clear vision on how the online operations should be conducted in Russian online market. Ranganathan’s and Jha’s conceptual framework was chosen as a ground theory in this study. Here, three main categories Computer Self-Efficacy and Past Online Experience, Website Quality and Costumer Concerns form basis for the study. Various articles and academic literature supplemented this theoretical approach. Qualitative research method was adapted and the study was conducted through five expert interviews. As a conclusion it can be stated that culture forms a ground for entire purchase decision-making process in online context. Results from the interviews were grouped according to main three theoretic categories and placed with Ranganathan’s and Jha’s original framework. This formed a new theoretical framework that defines diverse factors affecting specifically Russian consumer’s online purchase intention. This study suggests that following factors need to be taking into serious consideration in Russian online context: photography style, detailed product and company information, colors, language, product variety, reviews, recommendations, strong social media presence, fast check out and minimalistic order information, counterfeit fear, cash on delivery payment, training and guidance, extensive customer service, consumers’ insecurity, inexperience, high interest for technology and their individualistic personality.

Marketing plan for Le Coq Sportif Russia

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and Economics

Managing Subsidiary Integration During Corporate Expansion in Russia

Kansallisten rajojen yli laajentuvat yritykset kohtaavat kasvavia paineita yhtenäistää eri yksiköiden toimintatapoja, prosesseja ja järjestelmiä. Hyvin toteutettuna organisaation sisäinen integrointi voi johtaa tytäryritysten tuottavuuden parantumiseen ja strategisiin mittakaavaetuihin, kun taas huonosti toteutettuna integrointi voi johtaa lisääntyviin konflikteihin ja emoyhtiön kontrollin katoamiseen. Integroinnin kannalta Venäjälle perustettavat tytäryritykset asettavat suuria haasteita. Kasvava ja kehittyvä kansantalous on jatkuvassa muutoksessa kohti edistyneempiä ja tuottavampia toimintamalleja, mutta toisaalta yritystoiminnantaustalla vaikuttaa edelleenkin Neuvostoajan perinnöt, jotka muokkaavat yritysten johtamisrakenteita ja prosesseja. Nämä taustavaikuttajat vaikeuttavat kansainvälisen yrityksen yhtenäistämistä, mutta toisaalta tarjoavat suuria mahdollisuuksia yrityksille, jotka oppivat elämään Venäjän markkinoiden ehdoilla. Tämä tutkimus käyttää apunaan konstruktiivista tutkimustyötä ratkoakseenYIT:n Venäjälle perustettavien yritysten integrointiin liittyviä ongelmia ja mahdollisuuksia. Työn lopputuloksena syntyy oppimiseen pohjautuva integraatiostrategia ja tätä strategiaa tukeva integroinnin johtamisjärjestelmä.

Green Field fluteboard factory infrastructure requirements in Russia

Russian corrugated board market is rapidly developing. Owing to that Russia becomes more and more attractive to the companies ¿ world leaders in corrugated board production. Thus, in order to strengthen or even to maintain its market position the firm should uninterruptedly develop improving volume and quality of the products. At the same time operations in the Russian market are commonlyassociated with various types of risks which should be avoided. Unfortunately, the information of the Russian corrugated board market is not systematized yet there is almost no theoretical background in this areaand, therefore, the thesis is mainly based on the practical experience of the managers of Stora Enso. The goal of the paper is to define and describe the main particularities of Russian corrugated board market which are lying in different areas and to concentrate on the difficultieswith which a corrugated board factory may face while functioning in the Russian market. The contribution of the thesis consists of forming general requirements and principles while establishing a corrugated boardproduction facility and maintaining its operations in order to avoid risks, to save time and financial resources and as a result to operate in the Russian market obtaining higher profits.

Distribution systems of the food sector in Russia: the perspective of Finnish food industry

Finnish food producers' trade with Russia has experienced profound changes since the collapse of the Soviet Union. Simultaneously, the distribution systems of foodstuffs have changed remarkably. This study sheds some light into these changes and analyses the current situation in distribution systems of foodstuffs in Russia. In addition, the study discusses the possibilities of Finnish food producers to get more of their products to the shelves of Russian food retail stores. Before the 1998 financial crisis, the import of foreign foodstuffs was booming in Russia due to the overvalued rouble. As a result of the financial crisis, food import collapsed. The export of Finnish foodstuffs to Russia has been slowly recovering during the past few years, but in the most important product categories the pre-crisis levels have so far not been reached and maybe will not be reached. In certain product categories the growth has been only marginal. It seems that starting localproduction will become increasingly important in the future. This is further encouraged by the fact that Russian consumers favour domestic food products. Russian consumers are very price conscious and demand quality in food products. The perceived price-quality ratio is an important criterion in the purchase decision.The majority of foodstuff retail is still conducted via unorganised forms of trade (e.g. kiosks and marketplaces) but modern retail chains are developing at a fast pace in Russia. They are also expected to dominate the retail trade in foodstuffs over the unorganised forms of trade in the future. This will change the distribution systems as well. The retail chains are trying to shorten the distribution chain, similarly to what has been seen in the Western countries. This together with the strengthening of retail chains is likely to shrink the role of wholesalers, as the chains increasingly want to work directly with the producers. Many large retail chains are acquiring or have already acquired a distribution centre or centres in order to boost efficiency and control the flow of products. The strengthening of the retail chains also gives them power in negotiations, which the producers and distributors have to adjust to. For example store entry fees and retail chains' own private label products pose challenges to the food producers. In the food production sector the competition is fierce, as large Russianand foreign producers want to ensure their piece of the market. The largest producers utilise their size: they invest in big marketing campaigns and are willing to pay high entry fees to retail chains in order to secure a place on the store shelves and to build a strong brand in Russia. This complicates the situation from the viewpoint of small producers. Currently, the most popular type of distribution system among the interviewed Finnish food producers is based on a network of local distributors. There is, however, a strong consensus on the importanceof starting local production in order to be a serious actor in Russia in the future. Factors that hinder the starting of local production include the lack of local infrastructure and qualified staff, and the low risk tolerance of Finnish firms. Major barriers for entry in Russia are the actions of authorities, fierce competition, fragmented market and Finnish producers' heavy production costs. The suggested strategies for increasing the market share include focusing geographically or segment-wise, introducing new products, starting local production, andcooperation between Finnish producers. Smallness was one reason why Finnish producers had to cut down their operations in Russia due to the 1998 crisis. Smaller producers had fewer resources to tolerate losses during the period of crisis. Smallness is reflected also on trade negotiations with retail chains and distributors. It makes it harder to cope with the store entry fees and to differentiatefrom the mass of products propped up by expensive advertising. Finally, it makes it harder for Finnish producers to start or expand local production, as it is more difficult for a small producer to get financing and to tolerate the increased risks. Compensating for the smallness might become the crucial factor determining the future success of Finnish food producers in the Russian market.

Venäjän automarkkinat

Venäjän automarkkinoiden uskotaan kasvavan muutaman vuoden sisällä Euroopan suurimmiksi. Keskeisin syy automarkkinoiden nopeaan kasvuun on ollut venäläisten elintason ja tätä kautta ostovoiman kasvaminen. Autoluototuksen kehittyminen on myös kiihdyttänyt automarkkinoiden kehitystä. Venäjän automarkkinat jakautuvat neljään osaan: Uusiin venäläisiin merkkeihin, uusiin ulkomaisten merkkien Venäjällä valmistettuihin autoihin, uusiin tuontiautoihin sekä käytettyihin tuontiautoihin. Työssä keskitytään uusien autojen markkinoihin sekä autonvalmistajiin näiden markkinoiden toimijoina. Venäjän Neuvostoliitolta peritty autoteollisuus ei ole pystynyt täyttämään asiakkaiden kovenevia laatuvaatimuksia ja ulkomaiset automerkit ovatkin saaneet Venäjällä erittäin vahvan jalansijan. Venäjä on kaivannut ulkomaisia investointeja ja on suorastaan houkutellut ulkomaisia autonvalmistajia maahan. Ulkomaiset valmistajat ovat kuitenkin menestyksen lisäksi joutuneet kohtaamaan Venäjällä toimiessaan monenlaisia haasteita. Laatukriteerit täyttävien alihankkijoiden löytäminen on ollut vaikeaa ja joissain autoteollisuuden keskittymissä alkaa olla jo työvoimapulaa. Jatkuva inflaatio asettaa teollisuudelle palkankorotuspaineita. Venäjän automarkkinat ovat kuitenkin suuret ja houkuttelevat ja tulevat kasvamaan haasteista huolimatta vielä tulevina vuosinakin.

Pharmacy Industry in Russia and in the Baltic States

The aim of this study is to describe the structure of the pharmacy industry in four post-Soviet states on the Baltic Sea: Russia, Estonia, Latvia, and Lithuania. In addition to this, the opportunities that these markets have to offer for international pharmaceutical companies are explored. After the Soviet Union collapsed at the beginning of 1990s, the pharmacy sector has gone through tremendous changes. The pharmacy market shifted from a centrally controlled, one supplier system to an industry in which multiple distributors are competing in importing, wholesaling, and retailing of medicinal products. In the Baltic States, the number of pharmacies has not increased during the last years and companies have been growing mainly by acquisitions. Especially in Estonia the market is saturated and price competition is fierce. Similarly, in Latvia and Lithuania, markets are consolidating and wholesalers are growingly taking part in retailing by acquiring smaller chains. In Russia, the market is still fragmented and only one national pharmacy chain can be named, pharmacy chain “36.6”. Pharmacy chains are growing mostly through organic growth and competition between the biggest players is relatively low. The Russian market clearly offers many opportunities for international pharmaceutical operators. The ageing population, growing level of income, and changing living habits are creating new and growing needs for modern healthcare services and products.

Venäjään liittyvän markkinatutkimustiedon markkinapotentiaali Suomessa

Tämän diplomityön tavoitteena on tehdä markkinatutkimus suomalaisista yrityksistä, jotka toimivat tai aikovat lähiaikoina aloittaa toiminnan Venäjän markkinoilla. Tutkimus tehdään kaksiosaisena kyselytutkimuksena ja sen avulla selvitetään, minkälaisia Venäjään liittyviä tietotarpeita eri toimialojen yrityksillä on. Tuloksien avulla työn teettäjä Tutkimus- ja Analysointikeskus TAK Oy pystyy kartoittamaan potentiaalisia uusia asiakasyrityksiä. Diplomityön alussa tutustutaan markkinatutkimukseen ja luodaan katsaus Venäjän markkinoiden erikoispiirteisiin sekä esitellään TAK Oy. Tämän jälkeen läpikäydään vaiheittain markkinatutkimus, jonka toteutus perustuu diplomityön alussa esiteltyihin taustatietoihin. Työn lopussa kerrotaan tutkimuksen tulokset sekä niiden pohjalta tehdyt johtopäätökset ja suositukset TAK Oy:lle. Viimeisenä osana tässä työssä on yhteenveto tutkimuksen keskeisimmistä asioista. Diplomityön tuloksena saatiin aikaiseksi tutkimus suomalaisten yritysten Venäjän kauppaan kohdistuvasta kiinnostuksesta ja Venäjän markkinoihin liittyvistä tietotarpeista. Lisäksi tutkimuksien perusteella saatiin laadittua lista yrityksistä, jotka voisivat olla kiinnostuneita TAK Oy:n tuottamista tutkimuspalveluista.

Wood pellet markets in Russia

Bioenergy came to Russia through wood pellets. On account of prevalence of oil and gas in the Russian economy «bioenergy» has come with a great delay. Certainly, there were many woodworking enterprises and even municipal boiler-houses using wood waste and fire wood for energy reception, but this activity was not purposeful. More likely it was connected with necessity of waste recycling and with the organization of heat supply in the remote areas of the country. However, in 2001 was founded the first pellet plant in Russia. The purpose of this work was to analyze wood pellets market in Russia, investigate current situation on the home and export market, evaluates supply and demand development, opportunities for wood pellets manufactures in Russia, the main manufactures in Russian market; cost and prices for wood pellets in Russia. Also the work was intended to give better understanding of the main problems of wood pellets industry in Russia. Besides, this work had updated information about Russian customs and logistic systems.

Multichannel distribution strategy for electrical equipment marketing

The thesis examines System Integration and original equipment manufacturer (OEM) channel in the St. Petersburg drives market. The aim of the study was to increase understanding the relationship between OEM and SI and producers, problems and ongoing trends. The collected data was analyzed in order to find out which features of a power electronic drive product exercise a significant influence for the Russian companies decision. An essential part of this study was interviews as primary information sources, organized with SI and OEM companies which represented the basic SPb industry segments. The wholesalers and end users are left out from the analysis. The collected data was analyzed in order to find out which features of a power electronic drive product exercise a significant influence for the Russian companies decision.

Venäläiset instituutiot corporate governancen kentässä

Tutkielma rakentaa puitteet venäläisen toimintaympäristön ymmärtämiselle. Institutionaalisen ympäristön on oltava vahva tukeakseen yritysten corporate governancen mukaista toimintaa. Venäjän tapauksessa instituutiot ovat vielä osin kehittymättömiä ja vahvasti peräisin Neuvostoliiton ajoilta. Niiltä ajoilta on jäänyt myös suuri kulttuurinen perintö, joka vaikuttaa venäläisten toimintaan vielä tänäkin päivänä. Yrityksillä on monia mahdollisuuksia toimia venäläisillä markkinoilla lainmukaisesti, vaikka se onkin välillä hankalaa. Yritykset ovatkin kehittäneet keinoja, joilla regulatiiviset puitteet voidaan kiertää ja oikaista. Tässä niitä avustavat usein myös valtion kontrollit. Valtion on kehitettävä lainsäädäntöä, jotta yritysten olisi helpompi toimia sen mukaan. Lisäksi korruptiota on vähennettävä, jotta yrityksillä ei olisi mahdollisuutta toimia laittomasti ja viranomaisilla olisi mahdollisuus suorittaa työtehtäviään.

Challenges for Finnish companies in doing business in Russia

The purpose of this study was to define the key challenges for Finnish companies in doing business in Russia. The study consists of a theoretical and an empirical part and is conducted as a quantitative study. The theoretical framework was build around capital structure, cost of capital and emerging market theories. The findings suggest that the firms in the sample seek growth mainly from emerging markets. These research results also indicate that challenges are visible in emerging market environment. Challenges that companies are facing in Russian market are mainly connected with legislation, communication and language problems. In addition, companies’ profitability has changed during the financial crisis, which has been the main reason for the negative changes in companies’ profitability. Even though the financial crisis has had a strong effect on the worldwide economy, the firms in the sample are not postponing their investments to Russia, because of lack of new financing or unfavorable credit terms.

Analysis of companies' software as a service adoption intention factors

The goal of this study is to develop managerial recommendations for international vendors and system integrators, which offer Software as a Service for enterprise information systems on the Russian market. Those recommendations can be used to develop marketing, sales, new product and service level agreement strategies. For those reasons factors affecting SaaS adoption were determined and their influence on intention to adoption was examined.

Customer loyalty in DIY retailing in Russia: Innovative approaches for improving customer retention through technology

Customer satisfaction has been widely studied concept due to its importance on business performance. Customer satisfaction should ideally lead to customer loyalty and have a positive effect on business profitability and growth. This study investigates customer satisfaction and loyalty in the Do-It-Yourself retailing in Russian  market.  “K-rauta”  retail  chain  was  chosen  as  a  focus company for this study. Goal of the study was to investigate what creates customer satisfaction in this given market and what is the role of quality, trust and satisfaction for creating customer loyalty. The role of internet in consumer purchasing process was also investigated. Furthermore, consumer preferences towards new marketing solutions such as smart phone applications were briefly examined.

Local Embeddedness and Knowledge Acquisition and How They Affect Finnish Business Operations in Russia

This pilot project aims examine the factors of the Finnish subsidiaries local embeddedness, their knowledge creation capabilities and the transfer mechanisms of new practices in the context of the Russian market. The research is designed as a multiple case study conducted with a qualitative approach. The empirical data consists of the interviews of the four Finnish case companies operating in the Kaluga region and three local partner companies. The deductive and inductive approaches were employed to conduct the analysis of the data. The propositions for the future study were developed in the conclusive chapters of the research, where we propose that the factor of the economy growth and industrialization matters in terms of subsidiaries’ role dedication, their knowledge creation capabilities, and direction of the knowledge flow within the local environment.